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High tariff on Chinese textile concerns domestic industry
Mar '08
Felipe Calderon, President of Mexico, has undertaken a negotiation with China to reach a settlement over tariffs.

Tariffs on Chinese textiles and related products are currently as high as 1,000 percent and it is to deal with this excessive imposition of tax, that a meeting of textile industry executives was held in Mexico City.

Negotiations were disclosed by the President at the gathering where he stated, “We have very positive expectations that we will reach a satisfactory agreement with China”.

In December last year, the Mexican Government decided to levy duties on Chinese textiles, toys and shoes while it reviewed the imports to check unfair trade practices. Moreover, the tariffs, that were imposed since 1993, do not meet the World Trade Organization rules.

The decision to maintain some duties on Chinese imports will indirectly boost the economy and safeguard domestic jobs.

Besides, the President also said that in order to keep the industry competitive in the international market, Government has taken measures to reduce electricity rates and crack down on contraband and pirated textile goods.

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